Starbucks is a major retailer of coffee. From a net lease perspective, it is important to recognize that Starbucks’ initial growth and market dominance can be contributed to Starbucks ability to find great real estate locations. As others have pointed out, the Starbucks concept and success is driven as much by real estate as it is by coffee and the Starbucks experience. As a result, Starbucks has not only become the premier retailer of specialty coffee, but Starbucks’ retail locations have also become popular net lease investments. Starbucks typically operates under a 10 or 20-year net lease (varies between NN and NNN) with rental increases every five years. With over 13,000 locations in the US, Starbucks locations can be found in both urban and suburban locations, and their locations take advantage of other traffic generators, typically being positioned on the commuting-side of traffic patterns. The average Starbucks store size varies depending on urban versus suburban location, but the newer free-standing locations range from 1,900 – 2,100 square feet situated on 0.50 – 1.00 acres of land. The prototypical store model offers a drive-thru window and the configuration is adaptable to a variety of alternative uses. The combination of a strong brand, stable financials, and premier locations makes Starbucks an appealing option for net lease investors. Starbucks opened in 1971, a single store in Seattle’s historic Pike Place Market and grew into a global public company with more than 25,000 retail stores in 75 countries. Starbucks sells handcrafted coffee, tea and other beverages and a variety of fresh food items, including snack offerings, through company-operated stores. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and foodservice accounts. In addition to their flagship Starbucks Coffee brand, they also sell goods and services under the following brands: Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos. Starbucks has 7,880 company-operated stores and 5,292 licensed stores across the country. Starbucks plans to open 12,000 stores globally by 2021. Starbucks is # 131 on the Fortune 500.